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Out of more than 1,000 respondents, more than 60 percent couldn't identify the plan as a college savings tool. Even more troubling was the fact that nearly half of respondents with children that could actually benefit from the plan drew blanks.

A 529 plan isn't the only answer to soaring tuition costs, but from the looks of this survey, consumers are sorely in need of a refresher. Here's what you need to know:

What it is: In short, a 529 plan is a tax-free savings fund that can be set up for anyone heading to college. There are two main types: A prepaid tuition plan (the only kind higher education institutions can offer) and a savings fund, according to the College Savings Plan Network. Head over to CSPN's site to try their handy tool to compare the benefits of various plan features.

Who can open one: Put frankly, anyone in the country can open a savings plan in anyone else's name -- from your niece or nephew to your best friend's kid. There's no limit to how many plans you can open, either and you can even change the beneficiary whenever you want.

How it's funded: Each state offers at least one form of a 529 savings plan (see a full list here), but a lot of doubt has been cast on whether governments would be able to meet demand from cash-strapped consumers in the wake of the recession.

However, a recent report by the College Savings Association showed plans were successfully funded at a rate of 93 percent in 2011–up by 2 percent from the prior fiscal year–which is more than plenty to meet demand. Not everyone investing in plans necessarily taps into them at the same time.

Why you want one: The best perk of 529 plans is the ability to to pay for a host of college-related expenses, including tuition, room and board, books, computer equipment, and even Internet access, all tax-free (the plan student has to be enrolled in school to qualify for the computer and Internet perks, though).

The catch: There are limits to your contributions. Generally, you can put as much cash into the fund as the beneficiary needs to meet college expenses, which will take careful budgeting to figure out (use your school's tuition calculator as a gauge). Keep in mind any contributions that exceed $13,000 in a given year might incur a federal gift tax.

Location: Princeton, N.J.

Undergraduate Enrollment: 5,220

Total Annual Cost: $50,269

Average Debt at Graduation: $5,225

Students Who Borrow: 23%

Princeton’s no-loan financial aid policy, introduced a decade ago, means that less than one-fourth of students need to borrow, and the amount they do borrow is small. Princeton’s average debt at graduation, at a little over $5,000, is the lowest among our top 200 private colleges.

Plenty of colleges talk about keeping costs, and student debt, down, but Berea walks the walk: This Christian-focused institution covers the full $25,500 tuition for all students, out of a mix of grants and scholarships, leaving them to cover only $7,394 in remaining costs (including room and board). It’s no surprise that average debt here is second-lowest on our list.

With an average financial-aid package of about $40,000 a year, Williams brings the annual cost of its elite education to a relatively modest $15,360 for students who qualify. Williams admits students without considering their financial circumstances and meets the full demonstrated need of students who enroll.

An Ivy League school with a walloping endowment and a financial-aid budget of $117 million, Yale offers no-loan financial aid to more than half its students, including families earning well over $100,000. Result: Students who borrow carry away one-third less debt than the national average for borrowers at private schools.

This tiny, all-women’s school awards generous need-based and merit-based grants as well as privately funded need-based loans, which do not accrue interest while the student is in school. (Students also have access to federally sponsored loans, such as Staffords.) Scripps is one of the three members of the Claremont Colleges (a consortium of five colleges and two graduate programs that share faculty and facilities) to make our top ten for low debt.

Don't be afraid to shop around. Just because your state offers its own 529 plan doesn't mean you can't sniff around for better offers in other states. Students aren't required to attend college in the state where their plan is funded. MorningStar's interactive state-by-state map is a great way to compare plans.

They're not for everyone: Before deciding to invest in a 529 plan, seeking advice from a financial planner or tax consultant would be a wise choice. Basically, treat them like you would enrolling in a company retirement plan. The IRS and the College Savings Plan Network both offer helpful starter guides as well, which will give you talking points to cover.

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Eddie005

I set my daughter up with a 529 plan (Utah Education Savings Plan) through GradSave. GradSave is a online registry that lets you link a college savings plan so it can be easily shared online through facebook, twitter, etc . This way family and friends can gift directly towards her college savings with a click of the mouse. As a parent struggling through these economic times, I highly recommend to take a look at GradSave as a savings option.

If you think our current President is the sole basis of our economic woes, then perhaps you should invest in a history book. America's problems began long before Obama took office. Pres. Nixon, in the 1971, unilaterally ended the gold standard for the US dollar, and since then our economy has plundered. Not to mention of course, Ronald Reagan's failed theory of "trickle down economics" which led to: high interest rates, high unemployment and a massive recession. Dems and Reps are both to blame for our current status, nonetheless, this began long before Obama showed up.

If you want a lesson in economics then feel free to visit us at London School of Economics. I won't even mention the atrocities of the Bush/Cheney Administration. Read a book.